AN ACT relating to charitable gaming and making an appropriation therefor.
Amend various sections of KRS Chapter 238 to extend the definition of "charitable gaming" to include slot machines and electronic, computer, or other technologic aids; delete the limited duration requirement for charity fundraising events; extend the definition of "manufacturer" to include bingo paper and charity gaming tickets and the provision of electronic and computer devices; authorize the Department of Charitable Gaming to establish and implement standards for electronic systems of accounting and recordkeeping; allow the department to approve all electronic, computer, or other technologic aids; direct the department to issue temporary licenses to charitable organizations that have been in existence at least 3 years; permit denial of a license for intentionally making false or misleading statements; grant employees of the department authority to inspect the books and records of a licensed manufacturer or distributor; require a charity to be located in the county, or a contiguous county to the county, in which charitable gaming is conducted; lower the minimum percentage of adjusted gross receipts that must be retained for net receipts from 40% to 20%, and lower the percentages leading to various forms of licensee discipline accordingly; exclude listed costs when calculating the net receipt percentage; prohibit inaccurate reporting of the financial records of charitable gaming events; permit advertisement of linked bingo prizes in excess of $5,000; require charitable organizations to obtain department approval prior to using any electronic, computer, or other technologic aid in the conduct of bingo; direct the department to promulgate administrative regulations concerning linked bingo games; limit carryover or progressive prizes in seal card games to no more than $7,500; modify the cash prize bingo limit from $5,000 per event to $5,000 per day; require records and books to be maintained in accordance with generally accepted standards of accounting and require a charity to maintain records for six years at its offices or at a location designated and approved by the department; require any charity participating in linked bingo games to use a point-of-sale system; permit the department to mandate electronically filed reports within six years; integrate any additional fees related to the operation of a charitable gaming facility into the basic licensing fee; prohibit certain activities by an owner, officer, or contractee of a licensed charitable gaming facility; forbid the receipt of a charitable gaming facility license unless the applicant has been in operation for at least the last 3 consecutive years; authorize penalties for making intentionally false or misleading financial statements; establish the racing charitable gaming fund as a trust and agency fund administered by the department; require a charitable gaming facility operated by a licensed racing association to remit 5% of its net receipts to the fund; distribute the fund moneys exclusively to licensed charitable organizations within six months after the end of each fiscal year, to be used solely for charitable purposes; direct the department to promulgate administrative regulations to determine the application process and method of distribution of payments from the fund; require that any examination and inspection of charitable gaming supplies and equipment take place away from the gaming floor to avoid the appearance of any form of harassment against game patrons; designate sanctions against individuals found to be the cause of one or more serious violations and define "serious violation"; establish requirements for appeals to administrative actions by the department; APPROPRIATION.